Skip to main content
Technicals

Fibonacci ratios and retracements

In finance, there are certain levels that can be applied to both price and time, although they are more commonly used on prices. These levels, known as Fibonacci retracement levels, include 61.8%, 38%, and 50%. When a reversal begins, these levels are calculated based on the movement's low to high and represented by horizontal lines. They are then interpreted as potential stopping points for counter moves. Interestingly, the Fibonacci ratios were not only used in finance but also by Greek and Egyptian mathematicians, known as the Golden Mean. This ratio was applied in areas such as music and architecture. Additionally, the Fibonacci spiral, which follows natural growth patterns, is a logarithmic spiral.

Related terms

Accumulation

Understand the meaning and definition of Accumulation in the context of stock market, trading, and investments.

MORE
Triangle

Understand the meaning and definition of Triangle in the context of stock market, trading, and investments.

MORE
Double Top

Understand the meaning and definition of Double Top in the context of stock market, trading, and investments.

MORE
Range

Understand the meaning and definition of Range in the context of stock market, trading, and investments.

MORE
Stochastic oscillator

Understand the meaning and definition of Stochastic oscillator in the context of stock market, trading, and investments.

MORE

Open Free Demat Account!

Join our 3.5 Cr+ happy customers

+91
Explore other categories
Enjoy Zero Brokerage on Equity Delivery
4.4 Cr+DOWNLOADS

Enjoy Zero Brokerage On Stock Investments

Get the link to download the App

Scan this QR code to download the app
Get it on Google PlayDownload on the App Store

Open Free Demat Account!

Join our 3.5 Cr+ happy customers
+91